Does a finding made at an arbitration have preclusive effect in a subsequent action against the same employer?

California, United States of America


The following excerpt is from Walterscheid v. City of El Monte, B270664 (Cal. App. 2018):

Findings made during a labor arbitration may be given preclusive effect in subsequent litigation. (See Kelly v. Vons Companies, Inc. (1998) 67 Cal.App.4th 1329, 1339-1341 [union arbitration held preclusive against union members asserting similar issues in subsequent suit against employer].) "A prior determination by a tribunal will be given collateral estoppel

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effect when (1) the issue is identical to that decided in a former proceeding; (2) the issue was actually litigated and (3) necessarily decided; (4) the doctrine is asserted against a party to the former action or one who was in privity with such a party; and (5) the former decision is final and was made on the merits." (Id. at p. 1339, citing Lucido v. Superior Court (1990) 51 Cal.3d 335, 341, fn. 3.) Here, the arbitrator determined that the reasons respondent asserted in support of its decision to terminate appellant were not legally sufficient. Appellant contends that determination precludes respondent for asserting that those same reasons constituted nonretaliatory reasons for appellant's termination. We disagree.

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